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Saturday, November 7, 2015

WHAT IT TAKES TO BECOME AN ENTREPRENEUR

"Entrepreneurship is the pursuit of opportunities beyond
controlled resources"

As a young entrepreneur this definition of entrepreneurship by
Professor Howard Stevenson from the Harvard Business School has manifested what
exactly happen in my start-up business development. I am sure it
is going to inspire you too especially if you want to start and become an
entrepreneur. Let me explain its parts in detail:

Pursuit,

Implies a singular relentless focus, this is true, as an
entrepreneur you will always need to activate your idea in reality as you get
it. You will have to do something with whatever you have without waiting; you
will have that urge to show tangible progress to attract resources. In a simple
language an entrepreneur believe in acting upon ideas to materialize them so
they can attract its progress to meet their vision.

Opportunities,

This implies to an
offering that is novel in one or four of the following ways:

Pioneering
a truly innovative product

Devising
a new business model

Creating
a better or cheaper version of an existing product

Targeting
an existing product to new sets of customers

Above is what an opportunity entails, this is due to the fact
that, everything is actually existing in terms of resources and functions so as
an entrepreneur you will recognize an opportunity which will mean improving
what is available.

Beyond resource
controlled,

This implies resource constraints, as an entrepreneur you will
always have less resources at the beginning so you will have to minimize cost
and leverage your time by mobilizing your own funds to impinge in your initiative.
You will do this to develop your business cash flow so it sustains itself in
future and of course attract more funds from external investors. An
entrepreneur will make sure the business stands out for other investors to join
the force.

What are the risks
entrepreneurs face at the beginning?

Entrepreneurs face risks because they always pursue novel
opportunities while lacking enough resources to venture into their start-up businesses.
Such risks come in four main types:

Demand risk, this
relates to customers willingness to adopt the solution envisioned by you
as an entrepreneur. You will always be uncertain on this.

Technology
risk, this is
very high when engineering or scientific breakthrough is required to bring
a solution to fruition, you will also be uncertain

Execution
risk, this one relates to entrepreneurs ability to attract employees
and partners who can implement the venture’s plan.

Financing
risk, this one
relates to whether external capital will be available on the reasonable
terms.

Let me tell you, above risks are what makes people become
entrepreneurs, everything above is uncertain it needs your readiness to take such
risk and start, not everyone can do this only entrepreneurs.

To
minimize these risks, entrepreneurs are always following these steps in their
establishment.

Lean
experiment: at this level you will have to test your minimal
product to know whether customers need it and they are ready to buy, this
product will also work as your learning process to validate it before
producing more.

Staged
investing, this is when an entrepreneur utilize his/her resources
according to the level of investment milestone, here as an
entrepreneur you should not expend resourced needed for the next
investment before realizing the success of the recent milestones.

Partnering, this
allows an entrepreneur to reduce risk by expending other people’s
resources and sometimes rely on the risk taken on their side. On return
the entrepreneur’s initiative grows.

Storytelling,
this is when an entrepreneur tells his story to other people so they get
inspired and choose to impinge their resources in his/her venture. So as
an entrepreneur you will need to be an inspirational leader of your
initiative, you will need to be able to inspire others to choose
collaborating with you and investing in your initiative.

Now try to think deeper on this definition of entrepreneurship
above, doesn't it make you inspired to become an entrepreneur the way it did to
me? You just need to do what some of the above to become one of them.